WELL Health Technologies Corp T.WELL

WELL Divestiture Aligns With Clinics Businness Focus - TD

[ahsh1kah]

Divestiture of its electronic health records business is a good sign of its focus on capital allocation, David Kwan of TD Cowen says in a report.
The analyst notes that WELL is selling the business for about C$24 million after paying about C$15.4 million for it in April 2021. "Given WELL's increased focus on growing its Canadian clinics business, Intrahealth, which focuses on larger healthcare facilities, was becoming less core to its business," he says, and that the sale is "further evidence of WELL's focus on capital allocation, including business/asset divestitures".

[FishBC]

And...... Well Health owns over 20 % of the company buying it

[retiredcf]

Healwell is buying Intrahealth Systems from WELL for $24M, with the compensation paid mostly in AIDX shares. It is essentially a 'swap' of a business and WELL already owns shares of AIDX. Not much changes, really, though it puts AIDX in a better position to grow, with more revenue/cash flow, and WELL can benefit from its equity interest. It wil now own between 20% and 27% of the company

[Possibleidiot01]

This is financial engineering at it's best - as 5i points out nothing really changes and you can post a paper profit of $4.75 million as Well Health Technologies, an operator of virtual care clinics in British Columbia, acquired EHR-integrated practice management software provider Intrahealth Systems for over $19.25 million.. It will be interesting to see if the projected upcoming profit is